Government and Public Sector
Overview of the Sector
The Government and Public Sector in India plays a vital role in nation-building, economic stability, and social development. It includes central and state government departments, public sector undertakings (PSUs), municipal bodies, regulatory authorities, and autonomous institutions involved in areas such as infrastructure, energy, transport, defense, education, and public welfare.
Public sector enterprises have historically been the backbone of India’s industrial growth, contributing significantly to employment, capital formation, and strategic self-reliance. In recent years, there has been a strong focus on modernization, digital governance, and public service delivery through flagship initiatives like Digital India, Smart Cities, Make in India, and the National Infrastructure Pipeline.
The sector is also seeing an increased role of Public-Private Partnerships (PPP), outsourcing of non-core functions, and adoption of technology for efficiency and transparency. E-governance, real-time monitoring, and digital procurement systems (such as GeM and PFMS) are reshaping how government services are planned and executed.
However, the public sector often faces challenges related to fund utilization, budgetary controls, compliance with government accounting standards, and timely reporting. Independent audits and financial reviews are critical to ensure accountability, transparency, and optimal use of public funds.
With increasing emphasis on performance-based governance, fiscal discipline, and outcome-driven programs, the Government and Public Sector is undergoing significant transformation. Institutions that strengthen their internal controls, embrace digitization, and align with evolving policy frameworks will play a key role in driving India’s inclusive and sustainable growth.
The Government and Public Sector encompasses a wide array of entities including ministries, municipal bodies, public sector undertakings (PSUs), autonomous institutions, and statutory authorities. These institutions are custodians of public funds and resources, and are tasked with delivering large-scale welfare programs, infrastructure projects, and essential services — all under high levels of public and regulatory scrutiny. In this context, audit serves as a cornerstone of financial accountability, governance, and fiscal discipline.
Financial complexities in the sector stem from multi-tiered budgeting systems, earmarked grants, centrally sponsored schemes, subsidies, and inter-governmental transfers. Institutions must manage both capital and revenue expenditures across varied functional heads while ensuring adherence to fund utilization norms, accounting standards for government entities (GASAB/IGAS), and the General Financial Rules (GFR). Many also engage in externally aided projects (EAPs), requiring alignment with donor-specific financial covenants.
Audit procedures in the public sector are intricate due to the sheer scale and decentralization of operations. Public expenditure must be evaluated not only for financial accuracy but also for conformity with approved objectives, efficiency of execution, and value-for-money principles. Internal controls over procurement, tendering, contract management, and asset utilization are often weak or inconsistently applied — making risk-based audits essential.
Public sector undertakings and government-funded bodies are also subject to statutory audits under the Companies Act or CAG (Comptroller and Auditor General) mandates, with special emphasis on compliance with regulatory frameworks, performance metrics, and statutory disclosures. Audit also plays a critical role in identifying systemic inefficiencies, leakages, and governance lapses.
In a sector entrusted with taxpayer funds and socio-economic mandates, audits are not merely financial checks — they are vital instruments of transparency, accountability, and public trust, essential for sustaining institutional integrity and informed policymaking.
The Government and Public Sector encompasses a wide range of entities including ministries, public sector undertakings (PSUs), autonomous bodies, municipal corporations, and government-funded institutions. These entities manage large-scale public funds and are subject to strict regulatory and performance oversight. At P. Srinivasan & Co., we offer audit services tailored to the unique requirements of public sector organizations, focusing on fund accountability, statutory compliance, and transparent governance. Our audits cover grant utilization, scheme-wise expenditure tracking, public procurement processes, and compliance with the General Financial Rules (GFR), Government Accounting Standards (GASAB), and specific departmental guidelines.
We assist in the preparation and audit of utilization certificates, project-based financial statements, and compliance reports required by funding agencies, both domestic and international. Our team evaluates internal controls across budgeting, tendering, asset management, and payroll, ensuring that public resources are used efficiently and as intended. For PSUs and statutory bodies, we provide statutory audits, internal audits, and performance audits in line with regulatory frameworks under the Companies Act, Income Tax Act, and guidelines issued by bodies such as CAG, SEBI, and relevant ministries.
We also support audit-readiness for externally aided projects, CSR fund management, and compliance with PFMS and e-procurement systems. By combining domain knowledge with a strong public accountability framework, P. Srinivasan & Co. helps government and public sector clients strengthen transparency, improve financial governance, and demonstrate compliance with statutory and policy mandates.
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Systems & process setup & implementation
We design and create audit plan and execute audit procedures which enables our clients to have the audited reports at their fingertips -
Tax advisory
Designed to help clients understand and minimise the tax challenges that Educational Institutes face -
Authenticating Records
We look into the accounting records and provide valuable feedback and help the organisations win against any hurdles that come their way -
Strategize Growth
We help with people management, business planning and brainstorming ideas effective for the growth and development of the business/ organisations. -
Mergers & Acquisitions
As a Chartered Accountant, we play a crucial role in guiding businesses through the complexities of mergers and demergers.